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ou have just bought a used track-type tractor to add to your production fleet. The initial capitalized value of the tractor is $110,000. The estimated service life remaining on the tractor is 10,000 hours
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8 votes
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ou have just bought a used track-type tractor to add to your production fleet. The initial capitalized value of the tractor is $110,000. The estimated service life remaining on the tractor is 10,000 hours and the anticipated operating conditions across the remainder of its life are normal. The salvage value of the tractor is $12,000. The tractor was purchased on July 1, 1997. a. What amount of depreciation will you claim for each calendar year between 2007 and 2010

User Vikram Belde
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1 Answer

15 votes
15 votes

Answer: $32,667

Step-by-step explanation:

The truck's useful life is 3 years because it is 2007 to 2010.

Depreciation = (Cost - Salvage value) / Useful life

= (110,000 - 12,000) / 3

= $32,667 per year

User Belldandu
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2.9k points
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